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Gold firms as US dollar, bond yields retreat ahead of Fed decision – Markets News Jani

Gold firms as US dollar, bond yields retreat ahead of Fed decision – Markets

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Gold prices rose on Tuesday as the U.S. dollar and Treasury yields retreated, although investors remained cautious as markets awaited policy guidance from the Federal Reserve meeting.

Spot gold was up 0.3 percent at $1,637.54 an ounce by 0409 GMT, having previously touched its lowest level since Oct. 21. US gold futures were flat at $1,640.20.

The dollar index fell 0.2 percent, boosting gold’s appeal to overseas buyers, while the yield on the benchmark 10-year Treasury also fell.

A press conference after the Fed meeting will dictate the next $25 to $50 move for gold, said Stephen Innes, managing partner at SPI Asset Management.

Fall in gold prices

“If Jerome Powell continues to beat the hawkish drum and yields start to rise again, gold could fall to $1,625 and then we could test $1,600,” Innes added.

At the end of a two-day policy meeting on Wednesday, the U.S. central bank is expected to raise rates by 75 basis points for a fourth straight time, and is also seen debating when to cut back to smaller hikes. .

Gold prices have fallen about 21 percent since breaking above the $2,000-per-ounce mark in March as the Fed sharply hiked rates.

High US interest rates increase the opportunity cost of holding unproductive metal.

Meanwhile, a report by the World Gold Council (WGC) said global demand for gold rose 28 percent in the third quarter from the same period in 2021, boosted by record purchases by central banks, although capital There was a significant drop in the demand for curry.

The WGC has seen India’s gold consumption decline in the fourth quarter from a year ago as inflation dampens rural demand. Spot silver was up 1.2 percent at $19.36 an ounce, platinum was up 0.4 percent at $928.94 and palladium was up 1 percent at $1,859.92.


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